Now more than ever, technology is influencing the way we do business, communicate, move through and around the world, access and manage our homes, receive and administer healthcare, make purchases, secure information, and protect our most valuable property. Morrison Foerster keeps pace with this rapidly evolving landscape across our internationally recognized corporate, finance, intellectual property, and litigation practices. MoFo Tech brings together our insights relating to fields such as blockchain and distributed ledger, cloud and as-a-service technologies, driverless cars, drones, fintech, computer hardware and software, the Internet of Things, semiconductors, and telecommunications. The MoFo Tech blog offers real-time, in-depth analyses of the trends and complex issues shaping the global technology industry.<h2>ABOUT MORRISON FOERSTER</h2>Morrison Foerster is a leading global law firm that transforms complexity into advantage for its clients. Our clients include some of the largest financial institutions, banks, consulting and accounting firms, and Fortune 100, technology, and life sciences companies. Highlighting the firm’s commitment to client service, leadership in market-changing deals and impact litigation, and values-based culture, Morrison Foerster has been repeatedly recognized as one of the top 10 firms on The American Lawyer’s A-List. Year after year, the firm receives significant recognition from Chambers and The Legal 500 across their various guides, including Global, USA, Asia‑Pacific, Europe, UK, Latin America, and FinTech Legal. Our lawyers passionately care about delivering legal excellence while living our values. Morrison Foerster has a long-standing commitment to creating a culture that respects and celebrates differences, while providing an inclusive environment. The firm has achieved Mansfield Certification Plus since 2018 as a result of successfully reaching at least 30 percent women, communities of color, and LGBTQ+ lawyer representation in a notable number of current leadership roles and committees. The firm also has a long history of commitment to the community and society through providing pro bono legal services, including litigating for civil rights and civil liberties, improving public education and fostering the wellbeing of children, advocating for veterans, promoting international human rights, enforcing the right to asylum, and safeguarding the environment.

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Scott Llewellyn’s practice focuses on complex litigation in federal and state courts around the country, with an emphasis on patent and trade secret disputes. Over the past decade, he has worked on some of the most significant, high–profile IP cases involving technology for televisions, smartphones, and self–driving cars, relying on 40 years of experience with computer hardware and software. Scott also has significant experience with business divorce cases before courts and arbitrators, involving a mix of trade secret, patent, tort, and contract claims relating to technology development and implementation.Scott also has successfully tried general commercial arbitration and agency matters, briefed and argued various appeals in federal appellate court, and tried more than 20 cases for the Denver City Attorney’s office, most of them jury trials.Scott also has an active pro bono practice, having worked on a variety of criminal and immigration appeals, and having represented Colorado criminal defense and mental health organizations in high–profile suits against the state of Colorado for violations of the constitutional rights of defendants.At MoFo, Scott serves on the board of the Morrison & Foerster Foundation. In the broader legal community, he serves on the boards of the Colorado Lawyers Committee and Drop in the Bucket (a charity that builds wells and sanitation systems in sub–Saharan Africa).After law school, Scott clerked for the Honorable Clarence A. Brimmer, District of Wyoming, and the Honorable Diarmuid F. O’Scannlain, Ninth Circuit. He was also previously an adjunct professor at the Georgetown University Law Center.

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Partner

Scott Llewellyn’s practice involves complex litigation before state and federal courts around the country, with an emphasis on patent and trade secret disputes for high-tech companies, to which he brings more than 35 years of experience with computer hardware and software, in particular relating to the processing and transmission of audio, video, voice, and other types of data. Mr. Llewellyn has also tried commercial arbitration and agency matters; briefed and argued various appeals in federal appellate court; and tried more than 20 cases for the Denver city attorney’s office, most of them jury trials.

Scott F. Llewellyn

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MoFo Tech brings together legal insights and in-depth analyses on trends and complex issues shaping the global technology industry, covering fields such as blockchain and distributed ledger, cloud and SaaS technologies, driverless cars, drones, FinTech, computer hardware and software, the IoT, semiconductors, and telecommunications.

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MoFo Tech brings together legal insights and in-depth analyses on trends and complex issues shaping the global technology industry, covering fields such as blockchain and distributed ledger, cloud and SaaS technologies, driverless cars, drones, FinTech, computer hardware and software, the IoT, semiconductors, and telecommunications.

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AI Transparency in Healthcare: Navigating a Changing Regulatory Landscape

Recentive: Federal Circuit’s Patent-Eligibility Guideposts for Machine-Learning Inventions

Japan’s Approach to AI Regulation in 2025

Federal Circuit Clarifies Requirements for Prior Art Under Pre-AIA 35 U.S.C. § 102(e)

AI Agent as a Service in Medtech - Key Considerations for Commercial Contracts

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As the adoption of artificial intelligence (AI) continues to expand, the financial services industry is leveraging this technology in many ways. AI’s application in credit decision making has become increasingly prominent, driving efficiency and innovation across the sector. Some financial institutions are also using artificial intelligence in customer service; however, this has been met with some regulatory criticism in response to negative consumer outcomes. Beyond this, financial services companies leverage AI in fraud detection, investment management, home appraisals, and other critical areas. Regardless of how financial services companies use AI, ensuring the quality and reliability of the output is paramount, as this plays a critical role in maintaining compliance with regulatory standards.

AI Trends for 2025 - AI and Financial Services: Balancing Innovation with Regulatory Compliance

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Co-Chair of Financial Services Group

Jeremy Mandell is the co-chair of our Financial Services Practice Group. His practice focuses on financial services regulation, with particular attention to payment

Jeremy R. Mandell

Jeremy Mandell

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Associate

Rebecca Tesfaye is an associate in the Financial Services Group in Morrison Foerster’s Washington, D.C. office. 

Rebecca Tesfaye

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AI Trends for 2025 - AI and Financial Services: Balancing Innovation with Regulatory Compliance

AI Trends For 2022 - Export Control/CFIUS

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While Japan has a longstanding reputation for innovation, its startup market has not historically drawn the same degree of interest as those in the U.S. and other countries, despite a <a href="https://www.techinasia.com/tokyo-driving-era-innovation-startups" target="_blank">tenfold increase</a> in ecosystem investment over the last decade. However, as discussed at MoFo’s <a href="/topics/ai-dynamics-regulatory-landscape-and-industry-insights" target="_self">AI conference</a> held last November, several factors have been working to turn this tide, including the Japanese government’s continuing efforts to increase investment in domestic companies (e.g., Tokyo’s “Global Innovation with Startups” plan), increased appetite for risk-taking as Japan shifts away from lifetime employment, and an expansion of investment capital from Japanese companies looking to diversify.In 2024, however, there was a dramatic increase in interest in Japan fueled primarily by its robust AI market. A few key facts:<ul><li>Investment in the AI industry was strong in 2024, with investors looking to capitalize on a domestic AI market expected to reach <a href="https://www.statista.com/outlook/tmo/artificial-intelligence/japan" target="_blank">$10.75 billion</a> in 2025 and to grow at an annual rate of 27.71% through 2030. Highlights include Sakana.ai’s <a href="https://www.asahi.com/ajw/articles/15434714" target="_blank">JPY10 billion investment round</a> (drawing investment from NVIDIA and U.S.-based VCs and helping Sakana reach unicorn status) and Liquid AI’s launch in Japan and its <a href="https://www.ctc-g.co.jp/en/company/release/20240221-01695.html" target="_blank">partnership</a> with Itochu CTC. These deals continue a trend of <a href="https://www.perplexity.ai/search/amount-and-growth-rates-of-vc-uGaY3Bq8SmK3.eRWNQsFTA#1" target="_blank">dramatic increases</a> in VC investment in Japan over the last decade. While in-bound investment slowed somewhat in 2022–23, strong interest in Japan-domiciled AI companies is likely to drive these numbers up, as evidenced by the numerous U.S.-based VCs continuing to operate in Japan (e.g., Plug and Play, Geodesic, etc.), and Andreessen Horowtiz’s announcement to <a href="https://www.axios.com/2024/08/17/andreessen-horowitz-to-open-japan-office-am">open an office</a> in Tokyo.</li></ul><ul><li>The AI startup ecosystem in Japan has grown increasingly attractive to founders (including expatriates), buttressed by the <a href="https://www3.nhk.or.jp/nhkworld/en/news/backstories/3253/" target="_blank">accelerating scope</a> of investment in generative AI in Japan by Microsoft, OpenAI, SoftBank, and others (fueled in part by a pivot from China due to geopolitical risks), the thriving AI community in Japan (with organizations such as <a href="https://tokyoai.jp/" target="_blank">Tokyo AI (TAI)</a> having over 1,700 members), and Japan’s superior infrastructure conducive to building and deploying AI solutions. Government support for AI growth-stage companies in Japan—both through the establishment of domestic incubators, such as <a href="https://www.j-startup.go.jp/en/" target="_blank">J-Startup</a>, and the government’s <a href="https://thediplomat.com/2024/11/japans-2-trillion-yen-ai-stimulus/" target="_blank">recent announcement</a> to launch a new JPY2 trillion stimulus package to encourage investment in AI and semiconductors—has only furthered this interest.</li></ul><ul><li>Finally, Japan has become a highly desirable place to live for founders and engineers alike. Japan <a href="https://www.japantimes.co.jp/business/2024/09/12/economy/japan-best-country/" target="_blank">ranks</a> near the top across the globe when it comes to metrics for quality of life, cost of living, and healthcare quality. Add to this Japan’s increased cultural influence (e.g., for food, manga, etc.), and its no surprise that more and more young entrepreneurs are being drawn to Japan.</li></ul>We were privileged to have worked with a number of clients over 2024 participating in the active AI market in Japan and are very excited for the possibilities that lie ahead across the coming year.

SoftBank and HAPSMobile’s renegotiation of the joint venture with AeroVironment, Inc.

A global software company’s joint venture to commence operations in Japan

Mitsubishi UFJ Financial Group’s US$706 million investment in Grab Holdings Inc.

Mitsubishi Heavy Industries’ US$550 million carve-out acquisition

SoftBank Group’s US$9.6 billion investment in Xiaoju Kuaizhi Inc.

Alibaba Group’s acquisition of an equity interest in Ant Financial.

Toshiba’s divestiture of its legacy TV business to Hisense Electric Co., Ltd.

A global technology consulting firm’s software licensing and open source issues

Softbank’s US$1 billion investment in OneWeb

Kaken Pharmaceutical’s various development and commercialization partnerships

SoftBank’s IP and commercial issues

Otsuka’s development and commercialization agreement

TDK’s joint venture with Qualcomm

Splunk’s acquisition of Caspida, Inc.

AccuWeather’s joint venture with Huafeng Media Group

Yahoo! Japan’s partnerships with various advertising technology service providers

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Seth Graham is a partner in Morrison & Foerster’s Technology Transactions Group and advises clients on a wide range of transactional matters involving technology and intellectual property, including licensing arrangements, technology transfers, outsourcing transactions, development agreements, and other commercial and services arrangements.

Seth M. Graham

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Japan: Privacy Updates on Handling Personal Information in the “Digital Market”

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AI Trends for 2025 - Has AI Put Japan’s Startup Scene on the World Map?

A core strategic question facing life sciences companies developing novel AI-implemented methods is whether to file for patent protection or to keep the methods as trade secret.One successful approach is to develop a hybrid strategy for patents and trade secrets based on current and future company goals, following the considerations outlined in this blog post.Read the <a href="https://lifesciences.mofo.com/topics/patents-and-trade-secrets-in-ai-and-life-sciences" target="_blank">full blog post</a>.

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Briana’s practice focuses on patent preparation, prosecution, and counseling in the areas of biotechnology, pharmaceuticals, and artificial intelligence.

Briana Erin Mittleman Ph.D.

Briana Mittleman

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Dr. Meghan Poon counsels clients on patent preparation and prosecution, portfolio strategy, and IP due diligence in the areas of biotechnology and biologics. She has significant experience in diverse technologies including antibodies, cell therapies, gene therapies, diagnostics, and gene-edited plants. 

Meghan McLean Poon Ph.D.

Dr. Meghan Poon counsels clients on patent preparation and prosecution, portfolio strategy, and IP due diligence in the areas of biotechnology and biologics. She has significant experience in diverse technologies including antibodies, cell therapies, gene therapies, diagnostics, and gene-edited plants.

Meghan Poon

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Of Counsel

Josh Crawford's practice focuses on domestic patent prosecution, international patent portfolio management, patent infringement and validity determinations, inter partes review proceedings, and IP lit

Joshua A. Crawford

Joshua Crawford

Patents and Trade Secrets in AI and Life Sciences

One of the most noticeable securities litigation trends of 2024 has been the significant increase in artificial intelligence-related fraud claims. With companies in virtually all industries touting their use of AI to drive innovation and productivity, in-house counsel should be mindful that these disclosures may carry heightened risk because of the nascent or unproven nature of many AI technologies.In 2024, the private plaintiffs’ bar filed <a href="https://securities.stanford.edu/current-trends.html#collapse5" target="_blank">13 securities class action complaints</a> alleging that defendants misled investors in violation of federal securities laws when discussing their companies’ AI strategies. As they always do, these plaintiffs evaluated the defendants’ statements with the benefit of hindsight. In general, these “AI washing” cases allege that companies overstated their AI capabilities when subsequent disclosures showed those capabilities failed to live up to the earlier hype. For example, a company offering software tools to automate repetitive business processes announced a rebranding initiative that would focus on AI-powered tools. When it later reported poor quarterly results and its stock price dropped, <a href="https://www.pacermonitor.com/public/case/53990526/Steiner_v_UiPath,_Inc_et_al" target="_blank">a lawsuit</a> soon followed. Separately, a data management company that described itself as a leader in using AI-based software faced a short-seller report alleging that the company’s AI initiatives were “smoke and mirrors.” Its stock price fell steeply when the report was published. Plaintiffs then <a href="https://www.pacermonitor.com/public/case/52400692/DAGOSTINO_v_INNODATA_INC_et_al" target="_blank">sued</a>.Given the centrality of AI strategies for many companies across sectors—and not just “AI natives”—we expect this trend to continue in 2025.Takeaways:<ul><li>Legal should have a seat at the table to review any AI-related disclosures by technical and business teams.</li><li>Whenever possible, frame such statements as clear forward-looking statements that express the company’s hopes and expectations about the possibilities for the technology.</li><li>Because this technology is changing fast, take special care to review and update risk disclosures regularly to confirm they accurately capture the current risks AI capabilities entail for the company.</li></ul>

Pearlstein v. BlackBerry Ltd.

Broadscale OC Investors v. Clayton

Murphy v. Precision Castparts Corp.

Klein v. Ellison et al.

Rosenow v. Facebook.

In re Ocera Therapeutics, Inc.

MaxLinear, Inc.

Technology Storage Company

Energy Company

AI Computing Company

Financial Services Company

Global Venture Investor

Former CFO of Pharmaceutical Company

Private Technology Company

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Christin Hill is a partner in Morrison Foerster’s San Francisco office and a member of the firm's Securities Litigation group.

Christin Hill

Christin Hill is a partner in Morrison Foerster’s San Francisco office and a member of the firm's Securities Litigation group.

Christin J. Hill

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Michael is an associate in the Litigation Department and a member of the firm's Securities Litigation and Securities Enforcement groups.

Michael Komorowski

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Anissa Chitour is an associate in the Litigation Department of Morrison Foerster’s San Francisco office.
Anissa earned her M.A. in Change Management from the Russian Presidential Academy of National

Anissa Chitour

Anissa I. Chitour

AI Trends for 2025 - Plaintiffs’ Bar Targets “AI Washing” Disclosures